Facebook -5.6% as analysts weigh financial hit from news changes

The drop wipes out much of the $4.5 billion Zuckerberg has added so far this year

Facebook announced a major update that will put friends and family above pages or celebrities in a user's news feed.

He elaborated that he expects from these changes to make "sure that Facebook is time well spent".

Emphasizing the personal over posts from businesses could easily mean fewer ads in the feeds, though CEO Mark Zuckerberg deliberately didn't mention ads in explaining changes, analyst Doug Anmuth says. Over the next few months, we'll be making updates to ranking so people have more opportunities to interact with the people they care about. For example, live videos often lead to discussion among viewers on Facebook - in fact, live videos on average get six times as many interactions as regular videos.

"What are we really here to do?" he told The Times. He vowed last week to "fix" the social network after a year that saw Facebook come under sharp criticism for contributing to a climate of extreme political polarisation, the distribution of fake news and escalating privacy concerns.

The changes promised aren't entirely new - Facebook has been shifting the content on its news feed toward posts from friends and family and away from brands and publications for more than a year.

Zuckerberg said the measure became necessary to prevent public content from overcrowding user's news feed and preventing them from staying connecting with people.

"While we are a dominant news publisher on Facebook, we also employ strategies for diverse social media referral so as not to be dependent on any one source", said Ron Waksman, vice president of digital and editorial standards and practices for Global News and Corus Radio.




Facebook is changing how its News Feed algorithms work, aiming to show people more posts from their friends and family and less public content. It looks like Facebook has planned some major changes for its News Feed this year. Though these efforts have thus far been far from effective, the new changes threaten to undercut the measures even more.

He said they feel a responsibility to ensure Facebook services are also good for people's well-being. With Facebook's new changes, as the Times noted, "If a relative or friend posts a link with an inaccurate news article that is widely commented on, that post will be prominently displayed".

He quoted an academic research pointing out that interactions with the loved ones are more healthy and important for a person's wellbeing, instead of just reading news articles or watching shared videos. I'm changing the goal I give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions.

As we roll this out, you'll see less public content like posts from businesses, brands, and media.

The move is likely to result in people spending less time on the leading social network. And if we do the right thing, I believe that will be good for our community and our business over the long term too.

The Portal device is rumored to be released in the second half and will start off at $499 per unit, which is significantly higher than its rivals Echo, Google Home, and Apple HomePod, but could still be lowered in order to have a better chance in the market.

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